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Britain’s economy should grow faster in 2018 and 2019 as the expected agreement of a Brexit divorce bill - reported by the Daily Telegraph as €45bn to €55bn - should inspire more confidence in businesses and households.

Berenberg Bank now expects a sharp pick-up in business investment in the coming months as well as a more modest increase in consumer spending. As a result it has raised its GDP growth forecasts by 0.1 percentage points in each of the next two years, with growth rising from 1.5pc this year to 1.8pc in 2018 and 1.9pc in 2019.

“2017 was probably the low point,” said Berenberg’s senior UK economist Kallum Pickering, as he cut the probability of a ‘no deal’ Brexit from 30pc down to...